PFRF For Coop-1 (Flores)

general
provisions
“promotion the principle of transparency and

accountability in the financial reporting”
“developed from the Philippine Financial Reporting

Standards (PFRS) for Small and Medium-Sized Enterprises
(SMEs) taking into considerations cooperative laws, rules,
regulations and principles.”
concepts & pervasive
principles
Objective of financial Qualitative characteristics of
statements information
“to provide information “Understandability,
about the financial Relevance, Materiality,
condition, performance and Reliability, Substance over
cash flows of the form, Prudence,
cooperative that is useful for Completeness, Comparability,
economic decision-making” Timeliness, Balance between
benefit and cost”
principles
. Financial condition Performance

• the relationship of its assets, • the relationship of the
liabilities and equity as of a income and expenses of a
specific date as presented cooperative during a
in the statement of financial reporting period
condition
principles
Recognition of assets, liabilities, income and expenses
• The probability of future economic benefit
• Reliability of measurement
“An item that fails to meet the criteria for recognition may
nonetheless warrant disclosure in the notes or explanatory
material or in supplementary schedules. This is appropriate when
knowledge of the item is relevant to the evaluation of the
financial condition, performance and changes in financial
condition of a cooperative by the users of financial statements.”
principles
Measurement of assets, Accrual basis

liabilities, income and
expenses
Two common measurement Cooperative shall prepare its
bases are historical cost and financial statements, except
fair value for cash flow information,
using the accrual basis of
accounting
financial statements presentation
Fair presentation
• the faithful representation of the effects of transactions and
events in accordance with the definitions and recognition
criteria for assets, liabilities, income and expenses.
Going concern
• the management of a cooperative using this framework shall
make an assessment of the cooperative’s ability to continue
as a going concern.
financial statements presentation
Frequency of reporting
• present a complete set of financial statements at least
annually.
Consistency of presentation
• A cooperative shall retain the presentation and classification
of items in the financial statements from one period to the
next unless
• it is apparent that another presentation or classification would be
more appropriate
• this framework requires a change in presentation.
statement of financial condition
• Interest on Share Capital Payable

• Patronage Refund Payable
• Due to Unions and Federations (CETF)
• Members’ Equity
• Donations and Grants
• Statutory Funds (Reserve Fund, Education & Training Fund, Optional
Fund and Community Development Fund)
“A cooperative shall present current and non-current assets, and current

and non-current liabilities, as separate classifications in its statement of
financial condition”
statement of operations
Accounts peculiar to cooperatives affecting the statement of operations
4.1. Other Income and Expenses 4.2. Expense Account

(a) Project subsidy (a) Provision for CGF (KBGF)
(b) Optional Fund Subsidy (b) Members’ Benefit Expense
(c) Donation and Grants Subsidy (c) Incidental Expenses
(d) Education and Training Fund Subsidy (d) General Assembly Meeting
(e) Subsidized Project Expense (e) Affiliation Fee
(f) Social and Community Service
Expense
statement of changes in equity
The statement of changes in equity presents the

amounts of investments and withdrawals by members,
addition and utilization of statutory funds, movement
in donations and grants, and revaluation surplus
during the period.
statement of cash flows
provides information about the changes in cash and

cash equivalents of a cooperative for a reporting
period, showing separately changes from operating
activities, investing activities and financing activities
notes to the financial statements
A cooperative normally presents the notes in the following

order:
• a statement that the financial statements have been
prepared in compliance with the Philippine Financial
Reporting Framework for Cooperatives;
• a summary of significant accounting policies applied;
• supporting information for items presented in the
financial statements, in the sequence in which each
statement and each line item is presented; and any other
disclosures.
Disclosure of a change in accounting policy
• When an amendment to this framework has an effect on the
current period or might have an effect on future periods, a
cooperative shall disclose the following:
• the nature of the change in accounting policy.
• the cumulative effect of the change in accounting policy
recognized in profit and loss.
• for voluntary change in accounting policy, the reasons why
applying the new accounting policy provides reliable and
more relevant information.
accounting policies, estimates and errors

Disclosure of a change in estimate
• A cooperative shall disclose the nature of any change in an
accounting estimate and the effect of the change on assets,
liabilities, income and expense for the current period. If it is
practicable for the cooperative to estimate the effect of the
change in one or more future periods, the cooperative shall
disclose those estimates.

Disclosure of prior period errors
• An entity shall disclose the following about prior period errors:
• the nature of the prior period error.
• to the extent practicable, the amount of the correction
for financial statement line item affected.
• an explanation if it is not practicable to determine the
amounts to be disclosed.
• Financial statements of subsequent periods need not
repeat these disclosures

financial
INstruments
A financial instrument is a contract that

gives rise to a financial asset of one entity
and a financial liability or equity
instrument of another entity
inventories
Inventories are assets:

• held for sale in the ordinary course of
business;
• in the process of production for such sale; or
• in the form of materials or supplies to be
consumed in the production process or in
the rendering of services.
inventories
A cooperative shall measure inventories at
the lower of cost and estimated selling price
less costs to complete and sell.
A cooperative shall include in the cost of

inventories all costs of purchase, costs of
conversion and other costs incurred in bringing the
inventories to their present location and condition
inventories
A cooperative shall measure the cost of
inventories by using the first-in, first-out (FIFO)
or weighted average cost formula. The last-
in, first-out method (LIFO) is not permitted by
this framework
.
assess at the end of each reporting period whether
any inventories are impaired

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general

“promotion the principle of transparency and

“developed from the Philippine Financial Reporting

. Financial condition Performance

Measurement of assets, Accrual basis

• Interest on Share Capital Payable

“A cooperative shall present current and non-current assets, and current

Accounts peculiar to cooperatives affecting the statement of operations

4.1. Other Income and Expenses 4.2. Expense Account

The statement of changes in equity presents the

provides information about the changes in cash and

A cooperative normally presents the notes in the following

accounting policies, estimates and errors

accounting policies, estimates and errors

accounting policies, estimates and errors

A financial instrument is a contract that

Inventories are assets:

A cooperative shall include in the cost of

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